Sanko Marketing Foods Co., Ltd. (2762) AI Stock Analysis

• Market Cap: ¥3.90B
• Dividend Yield: N/A
• Average Volume (3M): 135.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• Revenue Growth: 3.26%
• EPS Growth: 4.62%
• Country: JP
• Employees: 237
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: 39,762,950
• 10 Day Avg. Volume: 83,600
• 30 Day Avg. Volume: 135,686
• PEG Ratio: 0.70
• Price to Book (P/B): 9.10
• Price to Sales (P/S): 0.30
• P/FCF Ratio: -4.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: ¥96.00 ▲(1.05% Upside)
• Action: Reiterated Date: 10/25/25
• Date: Action: Reiterated 10/25/25

The overall stock score of 47 reflects significant financial challenges as the primary drag, with weak profitability, high debt, and negative cash flows posing risks for Sanko Marketing Foods Co., Ltd. Technical indicators provide a slightly positive short-term outlook, but valuation concerns due to a negative P/E ratio further limit upside potential.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective market penetration, which can support long-term business expansion and resilience.

Diverse Revenue Streams

Diverse revenue streams reduce dependency on a single market, enhancing stability and providing flexibility to adapt to changing consumer demands.

Market Position

A strong market position in the food industry provides competitive advantages and opportunities for growth through established relationships and brand recognition.

Negative Factors

Profitability Challenges

Ongoing profitability challenges can hinder reinvestment in growth initiatives and affect long-term financial health, requiring strategic cost management.

Cash Flow Issues

Negative cash flows limit the company's ability to fund operations and growth, potentially leading to increased reliance on external financing.

Rising Leverage

Rising leverage increases financial risk and can strain the company's balance sheet, affecting its ability to invest in future opportunities.

Sanko Marketing Foods Co., Ltd. Business Overview & Revenue Model

Company Description

Sanko Marketing Foods Co., Ltd. (2762) is a prominent player in the food industry, specializing in the import and distribution of a wide range of food products, including frozen foods, processed foods, and specialty items. The company operates primarily in the food service and retail sectors, catering to a diverse clientele that includes restaurants, supermarkets, and food wholesalers. With a strong emphasis on quality and innovation, Sanko Marketing Foods aims to meet the evolving demands of consumers by offering high-quality products sourced from both domestic and international markets.

How the Company Makes Money

Sanko Marketing Foods Co., Ltd. generates revenue primarily through the sale of food products to various sectors, including food service and retail. The company maintains multiple revenue streams by importing and distributing a diverse range of food items, which allows it to cater to different market segments. Key revenue streams include wholesale distribution to restaurants and supermarkets, direct sales to consumers, and partnerships with international food suppliers that enhance its product offerings. Additionally, the company may benefit from exclusive distribution agreements and collaborations that provide unique products to its customers, further solidifying its market position and contributing to its earnings.

Sanko Marketing Foods Co., Ltd. Financial Statement Overview

Summary

Financial performance is weak due to persistent negative profitability, with a net profit margin of -7.6% in 2024, high leverage (debt-to-equity ratio of 1.41), and consistent negative cash flows. While revenue grew by 0.39% in the latest report, declining equity and operational losses signal significant financial instability.

Income Statement

The income statement reflects significant challenges for Sanko Marketing Foods Co., Ltd. Revenue has shown growth, with a 0.39% increase in the latest annual report (2025-06-30), but profitability remains a concern. Gross profit margin has been decent historically, though it declined from 71.9% in 2020 to 31.4% in 2024. Net profit margin is negative at -7.6% in 2024, and both EBIT and EBITDA margins are also negative, indicating ongoing operational losses. While revenue growth is a positive sign, the consistent lack of profitability drags down the score.

Balance Sheet

The balance sheet shows a concerning financial structure. The debt-to-equity ratio has risen to 1.41 in 2024 from 0.0 in 2020, indicating increasing leverage and potential risk. Stockholders' equity has significantly declined from 1.996 billion in 2020 to 317 million in 2025, while return on equity remains deeply negative at -218.8% in 2024, reflecting poor utilization of equity. The equity ratio is also low, dropping to around 13% in recent years, signaling limited financial stability. These factors contribute to a low score.

Cash Flow

Cash flow performance is weak, with consistent negative operating cash flow and free cash flow over the years. In the latest annual report (2025-06-30), operating cash flow was -585 million, and free cash flow was -640 million, showing no improvement. The free cash flow to net income ratio was positive at 1.26 in 2024, but this is largely due to negative net income rather than strong cash generation. The inability to generate positive cash flows poses significant risks to liquidity and operations, resulting in a low score.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2022	Jun 2020
Income Statement
Total Revenue	9.68B	9.33B	7.12B	2.41B	2.10B
Gross Profit	3.29B	2.93B	2.29B	1.38B	1.47B
EBITDA	-576.00M	-598.00M	-710.00M	-1.08B	-1.75B
Net Income	-816.00M	-711.00M	-784.00M	-439.00M	-1.82B
Balance Sheet
Total Assets	2.43B	2.38B	2.47B	2.31B	2.18B
Cash, Cash Equivalents and Short-Term Investments	628.00M	454.00M	898.00M	978.00M	922.00M
Total Debt	521.00M	459.00M	412.00M	223.00M	200.00M
Total Liabilities	2.11B	2.05B	2.10B	1.75B	1.69B
Stockholders Equity	317.00M	325.00M	375.00M	559.00M	488.00M
Cash Flow
Free Cash Flow	-640.00M	-1.10B	-915.00M	-263.00M	-1.87B
Operating Cash Flow	-585.00M	-880.00M	-769.00M	-134.00M	-1.78B
Investing Cash Flow	-52.00M	-286.00M	74.00M	-301.00M	1.06B
Financing Cash Flow	822.00M	698.00M	605.00M	490.00M	507.00M

Sanko Marketing Foods Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 95.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2762, the sentiment is Neutral. The current price of 95 is below the 20-day moving average (MA) of 98.05, below the 50-day MA of 98.78, and below the 200-day MA of 97.97, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 48.27 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2762.

Sanko Marketing Foods Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3077	73 Outperform	¥4.11B	11.39	―	―	6.16%	86.76%
3358	63 Neutral	¥4.19B	12.53	―	―	3.85%	-59.79%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3065	54 Neutral	¥4.92B	67.75	―	0.31%	-2.77%	134.81%
2762	47 Neutral	¥3.90B	-7.98	―	―	3.26%	4.62%
9969	44 Neutral	¥4.06B	26.17	―	1.99%	-0.91%	―
3067	40 Underperform	¥4.16B	6.85	―	―	-2.70%	98.30%